Will home insurance cover cyclone damage in PNG?

Home insurance is all about protecting your finances if something happens to your house.

Among the potential threats to your property, natural disasters are some of the most scary. It is sensible, therefore, to find out what measures you can take to minimise your risks.

In this article, we will tell you if home insurance in PNG covers you for one of the most common natural disasters we experience: Cyclones.

You must carefully read the wording of your policy to check what it includes.

Will home insurance cover cyclone damage in PNG?

Natural disasters, sometimes referred to as Acts of God in insurance terms, are often more complicated than other potential reasons to claim on home insurance, such as theft or accidental damage.

The damage caused by cyclones can be generally divided into two categories:

• Water damage from flooding – Floods are common following extreme cyclones, and the water can damage both the inside and outside of your property. Normally, flooding damage is not part of a standard home insurance policy, but it is worth asking your insurer whether you can purchase additional cover if you are particularly concerned about this.
• Wind damage – Cyclones cause extremely strong winds that can damage the structure of your house. Wind damage is usually covered in home insurance policies, however it is important to check with your individual insurer, as this is not always the case. Even if wind damage is included in your plan, you may find that cyclone winds specifically have their own category, sometimes with a higher excess for you to pay. Carefully reading policy documents before you buy is key to ensuring the cover you purchase is right for you.

Another important feature to check out when considering a home insurance policy in the context of cyclones, is what provisions are included if your house is uninhabitable. Look out for something called 'loss-of-use' coverage. This is to help you pay for temporary housing and living expenses (e.g. food) while your home is repaired. 

When it comes to safeguarding your home against cyclones and other natural disasters, the key is to understand exactly what your policy covers, and what is not included. This way you can purchase a policy knowing that it includes the protection you want. If you have more questions on the details of our home insurance policies, get in touch with the team at Trans Pacific Assurance Limited today.